Client
Makeup & Accessories Brand Sold at Sephora / ULTA / HSN / Dermstore
Business Challenge
This mass-tige product, in wide distribution internationally, was facing 120+ discounting resellers on Amazon. Hundreds of duplicate listings led to customer confusion, high returns, and poor reviews. Their luxury retailers were concerned about the lack of price control.
Goal
Eliminate resellers, correct the pricing issue and establish an MSRP for all retailers.
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“We saw a bump in all e-commerce websites including Sephora.com within 2 months of working with Market Defense.”
Approach
In 90 days, Market Defense removed 90% of the resellers and provided the brand the identity of the diverters, leading the brand to multiple leaks in their international distribution. Once the account was clear of resellers and MSRP was restored to full price, the brand’s retailers’ concerns were resolved and their business began to grow, as consumers were no longer motivated by discounting.
Results
- 1,787 IP Protection cases successfully resolved including trademark infringements.
- 99% Buy box ownership maintained on top 10 SKU’s while brand expanded into additional countries.
- $0.3 to $1.8 million in sales in Year 1, and $2.4 million in Year 2.
- Advertising campaigns average 6.22x ROI over two years with high of 8.12.
- 11% increase in Sephora.com business.
